7 Major Sources of Economic Progress

Legal Systems

Sweden has effective policies that discourage bribery of public officials and uphold government integrity. Which allows the judicial system to operate independently and impartially. Which also allows for a well maintained rule of law. But in the last year freedom of corruption has declined.

Competitive Markets

Sweden has built a successful openness to global trade and investment. They are a very export-oriented country with products such as, automobiles, telecommunication devices, and construction equipment.

Limits on Government Regulation

Economic sectors dominated by small businesses are usually left alone by the government. Sweden continues to try to eliminate farm subsidies, allowing for a more open market. They are also limiting green energy support.

An Efficient Capital Market

Although Sweden has a large government budget, they have made small improvements to its economic freedom. In the past five years, economic freedom has advanced by 0.8 point with gains in five of the 10 economic freedoms.

Monetary Stability

Fiscal responsibility remains central to the new government’s policy proposals, but plans to reverse some of the previous government’s tax cuts in order to fund higher spending could hurt growth.

Low Tax Rates

Sweden’s top individual income tax rate is 57 percent, and its top corporate tax rate is 22 percent. Other taxes include a value-added tax and a capital gains tax. The overall tax burden equals approximately 44.3 percent of the domestic economy. Public expenditures account for 51.9 percent of domestic output as part of its well-established welfare state.

Free Trade

Sweden generally treats foreign and domestic investors equally. The modern financial system provides a large selection of banking for foreign and domestic investors. The number of state-owned businesses is relatively large. And banks remain well-capitalized.

Future of Money: Welcome to Cashless Sweden

The video talks about how Sweden is advancing as a cashless economy. Only 41% of their transactions are conducted in cash but in the US it is 55%. It has gotten to the point that some businesses in Sweden do not even accept cash. And that includes homeless people that sell magazines on the street but accept electronic payments.

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Extra Credit

In Sweden 80% of children have working mothers and 90% have working fathers. To allow the parents to spend more time with their children, Sweden's government gives them money.